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Study of customer feedback & shrinkage reduction in food bazaar


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Study of customer feedback & shrinkage reduction in food bazaar

  1. 1. A Project Report On “Study of Customer Feedback and Shrinkage Reduction at Food-Bazaar In Big Bazaar, Sinhgad Road, Pune” Submitted to University of Pune in Partial Fulfillment of Requirement for the Award of Degree of “MASTER OF BUSINESS ADMINISTRATION” By Mr. Giridhar Shinde Under the guidance of Mr. Yatin BokilSKN SINHGAD SCHOOL OF BUSINESS MANAGEMENT, AMBEGAON (Bk), PUNE (2011-13)
  2. 2. DECLARATION I, the undersigned, hereby declare that the Project Report entitled “Study ofCustomer Feedback and Shrinkage Reduction at Food Bazaar in Big Bazaar,Sinhgad Road, Pune” written and submitted by me to the University of Pune, in partialfulfillment of the requirement for the award of degree of Master of BusinessAdministration under the guidance of Mr. Yatin Bokil, is my original work and theconclusions drawn therein are based on the material collected by myself.Place: PuneDate: / / Signature of Student 1
  3. 3. ACKNOWLEDGEMENT I sincerely express my deep sense of gratitude to Dr. Rajashree Shinde, DirectorSKNSSBM for the invaluable guidance and constant encouragement which is invaluablein completing of this project. I am thankful to Mr. Rupesh Singh (Store Manager), Sinhgad Road Big-Bazaar,Pune for his constructive discussions and perseverance during this project. Also I wouldlike to thank the all staff of Big-bazaar, Sinhgad road for their valuable suggestions anduseful comments throughout this project. I am also thankful to Mr. Yatin Bokil, for his extraordinary cooperation,invaluable guidance and supervision throughout this project. I owe and respectfully offer my thanks to my noble parents for their constantmoral support and mellifluous affection which helped me to achieve success in everysphere of life and without their kind devotion this thesis would have been a sheer dream. I sincerely acknowledge the efforts of all those who have directly or indirectlyhelped me in completing my thesis successfully. It is the kindness of these acknowledged persons that this thesis sees the light ofthe day. I submit this thesis of mine with great humility and utmost regard. Mr. Giridhar Shinde. 2
  4. 4. INDEXChapter Particulars Page No. No. Executive Summary 1. Introduction 1 2. Profile of the organization 4 3. Research Design & Methodology 16 4. Conceptual Background 19 5. Data Presentation , Analysis and Interpretation 29 6. Findings , Suggestions and Conclusion 47 Bibliography Annexure 3
  6. 6. EXECUTIVE SUMMARY The study of customer feedback & shrinkage reduction is very important for anyretail store. Study of customer feedback gives organizations an idea of what exactlycustomer wants, which helps them in delivering what is required by the consumers hencegiven them maximum satisfaction which is of utmost importance in these competitiveworld of retail. By reducing the shrinkage; store can improve the revenue & loss will beminimized. Big bazaar is one of the retail giants which have come up as a revolution in theretail industry. Big Bazaar has six outlets in Pune and one of this outlet is on SinhgadRoad. The Big Bazaar management at Sinhgad road, Pune felt that they had a slightreduction in the footfalls of Food-Bazaar and hence they wanted to find out the variousfactors responsible for the same by taking the feedback from customers. They alsowanted to identify the various reasons for shrinkage in their outlet & wanted to reduce theshrinkage. On this background this project was conceptualized and initiated. The project is about understanding the needs & expectations of customers throughtheir feedback and understanding various aspects which influence the consumer buyingbehavior. The project also includes the study of shrinkage, causes of shrinkage andpreventive ways to reduce shrinkage to reduce losses and thereby increase profitability. Based on findings of study, suggestions have been given to management of FoodBazaar so that it can sustain old customers, also gain new customers and reduceshrinkage which can result in increasing revenue and also aid Food Bazaar in sustainingits competitive advantages in market. 5
  8. 8. INTRODUCTION India is the second fastest growing economy in the world. It is third largest economy in the world in terms of GDP and fourth largest economy in terms of Purchasing Power Parity. India presents a huge opportunity to the world at age, to use as a hub. Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape, India is all set to experience the phenomenon of global village. India is the “promised land” for global brands and Indian retailers A “Vibrant economy”. India tops in the list of emerging market for global retailer and India‟s retail sector is expanding and modernizing rapidly in line with India‟s economic growth. The future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward becoming the next boomindustry. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under oneroof. The Indian retailing sector is at an inflexion point where the growth of organizedretailing and growth in the consumption by the Indian population is going to take a highergrowth trajectory. The Indian population is witnessing a significant change in itsdemographics. A large young working population with median age of 24 years, nuclearfamilies in urban areas, along with increasing working-women population and emergingopportunities in the services sector are going to be the key growth drivers of the retailsector in India. Big Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space.Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clustersoffering a wide range of merchandise including fashion and apparels, food products,general merchandise, furniture, electronics, books, fast food and leisure and entertainmentsections. In July 2002, Big Bazaar made a challenging extension: It entered the food retailwith a 9000 Sq. ft. Food Bazaar at its Lower Parel store in Mumbai. Enthused by thephenomenal response, the company has set up Food Bazaar in other Big Bazaar storesalso. The company‟s reason for entering food retail was food spending at 53% of personal 7
  9. 9. income outstripped every other itemized spending in India. Despite this high spending, therole of organized food retail in the country‟s total food spend was just one percent. The company‟s Food Bazaar was adapted to the Indian environment. To attractregular bazaar-goers, a mandi was created within the Food Bazaar where consumers couldtouch, feel, pick and choose products. This choice was supplemented by the provision forpackaged food for the westernized shoppers. Food Bazaar prices were priced at wholesalerate below the MRP. Private labels were introduced for high margin and price sensitiveproducts like tea, salt and oil. The project is based on a survey done on customers of Food Bazaar, SinhgadRoad, Pune; which is a type of hypermarket providing all products at low cost. It is alsoknown as one store shop wherein a customer gets all products under a roof. Customer feedback is the process of providing information to businesses aboutproducts, services and customer service. Management, marketing and sales departmentscan all use customer feedback to streamline processes and improve profitability. Customercomments and complaints given to a company are an important resource for improvingand addressing the needs and wants of the customer. The project is about the study of customer feedback to understand what exactly customer wants, which will help them in delivering what is required by the consumers hence giving them maximum satisfaction. Also it includes the study of shrinkage at Food Bazaar and its causes. Thus by reducing shrinkage store can improve the revenue & loss will be minimized. 8
  10. 10. OBJECTIVES: 1) To study factors influencing the customer buying behavior at Food Bazaar. 2) To find the level of satisfaction of customers on various aspects of Food Bazaar. 3) To identify the reasons for shrinkage in Food Bazaar. 4) To provide suggestions to management of Food Bazaar for enhancing customer satisfaction and for shrinkage reduction based on findings of the study.SCOPE: The scope includes study of the feedback of customers and shrinkage reduction atFood Bazaar, Sinhgad Road, Pune. Within Food Bazaar, aspects of various departmentshave been studied in general and scope does not include study of other departments inBig Bazaar (i.e. departments other than Food Bazaar).LIMITATIONS: 1) Research time is limited only to two months. 2) Many of the senior citizens are somewhat reluctant to fill up the questionnaire. 3) There may be the possibility of bias in the responses. 4) In a rapidly evolving retail scenario, the marketing environment changes are important to be considered in order to assimilate the findings. 5) The findings of study are limited to Food Bazaar in Big Bazaar on Sinhgad Road only. 9
  12. 12. INTRODUCTION Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 asManz Wear Private Limited under the stewardship of Mr. Kishore Biyani. It wasconverted into a public limited company in September, 1991. PRIL set up its firstmenswear Pantaloon Shoppe outlet in 1993. The company‟s name was changed toPantaloon Retail (India) limited in 1999, when it made a fully fledged entry into the retailsegment through the Pantaloons Family Store. As India‟s leading retailer, Pantaloon Retail inspires trust through innovativeofferings, quality products and affordable prices that help customers achieve a betterquality of life every day. It serves customers in 85 cities and 60 rural locations across thecountry through over 15 million square feet of retail space. Pantaloon Retail is theflagship company of Future Group, India‟s retail pioneer catering to the entire Indianconsumption space. Through multiple retail formats, we connect a diverse and passionatecommunity of Indian buyers, sellers and businesses. The collective impact on business isstaggering: Around 220 million customers walk into our stores each year and chooseproducts and services supplied by over 30,000 small, medium and large entrepreneursand manufacturers from across India. This number is set to grow. It operates multipleretail formats in both the value and lifestyle segments of the Indian consumer marketincluding:Pantaloons - a chain of fashion Big Bazaar - a uniquely HomeTown - One- stopoutlets. Indian hypermarket chain. destination for every Indian home-owner.Food Bazaar - a supermarket Central - a chain of seamless Ezone - eZone brings tochain that blends the look and destination malls. you the latest in feel of Indian bazaars with electronics at the lowestmodern retail aspects like choice, prices.convenience and quality. Other formats include Brand Factory, Ethnicity, Planet Sports, aLL and more. 11
  13. 13. As modern retail drives fresh demand and consumption in new categories, it‟sstrategy is based on a deep understanding of Indian consumers the products they want,and making these products available in every city in every store format. It is in line withits broad objective of being a catalyst in India‟s consumption-led growth and being apositive agent of change in the communities we serve. Future group continues to beIndia‟s leading multi-format retailer and a leader in sustainability and employmentopportunity. Through over 15 million square feet of retail space, we serve customers in85 cities and 60 rural locations across the country. Around 220 million customers walkinto stores each year. We employ 35,000 people directly from every section of oursociety.LEADERSHIP:“Modern retail will drive new demand, drive consumption in new categories and as retailers, we will have to play a major role and create demand for many new products.” --Mr.Kishore Biyani. (MD) Kishore Biyani is the Managing Director and the Group Chief Executive Officer of Future Group. Considered a pioneer of modern retail in India, Kishore‟s leadership has led Future Group‟s emergence as India‟s leading retailer operating multiple retail formats that cater to the entire basket of Indian consumers. Kishore Biyani led the company‟s foray into organized retail with the opening ofthe Pantaloons family store in 1997. This was followed in 2001 with the launch of BigBazaar, a uniquely Indian hypermarket format that democratized shopping in India. Itblends the look and feel of the Indian bazaar with aspects of modern retail like choice, 12
  14. 14. convenience and quality. This was followed by a number of other formats including FoodBazaar, Central and Home Town.Shailesh Haribhakti (Chairman and Non-Executive Independent Director )S Doreswamy (Non-executive Independent Director )Dr. Darlie Koshy (Non-executive Independent Director )Anil Harish ( Non-executive Independent Director )Bala Deshpande (Non-executive Independent Director )Vijay Kumar Chopra (Non-executive Independent Director )Gopikishan Biyani (Non-executive Director )Rakesh Biyani (Executive Director )Vijay Biyani (Executive Director )Kailash Bhatia.( Executive Director)VISION & MISSION OF THE ORGANIZATION:Manifesto Rewrite Rules. Retain Values.Vision We shall deliver Everything, Everywhere, Every time for, Every Indian Consumer in the most profitable manner. Mission We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. 13
  15. 15. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.Core Values Indianness: confidence in ourselves. Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity & positivity in thought, business & action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.HISTORICAL BACKGROUND: 2012 : Big Bazaar is planning to add further value to its retail services by offering Value added services like grinding, de-seeding, vegetables cutting at free of cost. Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India. 2011 : Big Bazaar has come up a new logo with a new tag line: „Naye India Ka Bazaar‟. Also opened 200th store in India. Future Group has launched its latest venture, Foodhall – a premium food destination across 10 metros in India. 2010 : Future Value Retail Limited is formed as a specialized subsidiary to spearhead the group‟s value retail business through Big Bazaar, Food Bazaar and other formats. Ranked 6 among the Top 50 Service Brands in India. 2009 : Big Bazaar captures almost one-third share in food and grocery products sold through modern retail in India. Mahendra Singh Dhoni and Asin were chosen as the brand ambassadors of Big Bazaar. 14
  16. 16. 2008 : Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign.2007 : Future group crosses the $1 billion turnover mark. Big Bazaar partners with to launch Indias most popular shopping portal.2006 : Big Bazaar launches Shakti, India‟s first credit card program tailored for housewives. Navaras – the jewellery store launched within Big Bazaar stores.2004 :Big Bazaar and Food Bazaar awarded the country‟s most admired retailer award in value retailing and food retailing segment at the India Retail Forum.2003 : Big Bazaar enters Tier II cities with the launch of the store in Nagpur.2002 : Food Bazaar, the supermarket chain is launched in Mumbai at High Street Phoenix.2001 : Pantaloon Retail launches three Big Bazaar stores (Hypermarket chain) within a span of 22 days in Kolkata, Bangalore and Hyderabad.1997 : Pantaloon Retail enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata.1994 : The Pantaloon Shoppe, our exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.1992 : Pantaloon Retail India Ltd. made an Initial public offer (IPO) in the month of May.1991 : BARE, an Indian denim brand is launched.1987 : The company is incorporated under the name of Manz Wear Private Ltd. Pantaloons: one of India‟s first formal trouser brands is launched. 15
  17. 17. ORGANIZATIONAL CHART Store Manager (SM) Asst. Store Manager (ASM) Supprt Operation Warehou-HR VM Cash CSD se Non- General Food Fashion Merchan Food -dise Dept. Dept. Dept. Dept. Manager Manager Manager Manager ADM ADM ADM ADM Team Team Team Team Leader Leader Leader Leader Team Team Team Team Member Member Member Member 16
  18. 18. CURRENT STATUS OF THE ORGANIZATION: In the last 5 years PRIL has evolved as a leading manufacturer-retailer in thecountry with 13 Pantaloon departmental stores, 6 Big Bazaar hypermarket discount storesand 6 Food Bazaar - food and grocery stores. „Pantaloons‟, „Big Bazaar‟ and „FoodBazaar‟ together account for close to 650,000 sq.ft of retail space in the country. Big Bazaar hypermarket discount stores have been positioned as „Is se sasta auracha kahin nahi!‟- with price as the key value proposition. Products are cheaper thanmarket price by 5%-60%. Apparels are normally cheaper by 25% to 60% than theprevailing market prices, while other product categories are cheaper by 5% to 20%. Food Bazaar – Food Bazaar represents the company‟s entry into food retail andis targeted across all classes of population. Food Bazaar replicates a local „mandi‟, toprovide the much important „touch & feel‟ factor which Indian housewives are used to inthe local bazaar. Food Bazaar has over 50,000 stock keeping units which cover grocery,FMCG products, milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besidesfruits and vegetables. All products are sold below MRP and discounts range between 2%to 20%. Fruits and vegetables are sold at prices comparable to wholesale prices. PRIL has drawn up an aggressive expansion plan over the next two years. Anestimated 380,000 sq ft of additional retail space would be operational in F6/04 andanother 680,000 sq.ft. by F6/05. The company has already identified and signed up spacefor 11 Big Bazaars, 2 Food Bazaar‟s, 4 Pantaloon‟s, and 2 Central Malls. PRIL has alsocreated the requisite backend infrastructure necessary for expansion of its operationsnationally. Warehouse - PRIL has a Central Warehouse at MIDC Tarapur. The warehouse iscreated into modular fashion wherein first phase of 25,000 square feet is operational. Thecompany has zonal warehouses at Mumbai, Kolkata, Hyderabad and Chennai of 10,000-15,000 square feet each. Manufacturing facilities - The Company has one of the most modern trousersmanufacturing plant in the country. The trouser plant located at MIDC Tarapur in thesame premises of Central Warehouse. The plant was setup with technical knowhow fromBellows, U.K. with completely automatic and the most modern machines for fusing,serging, bottom hemming, welt pocket making operations. This factory has an installed 17
  19. 19. capacity to manufacture 1400pcs trousers a day. The company also has its own plant tomanufacture Denim jeans at Mumbai. The plant has an installed capacity to manufacture700 jeans per day; it has been setup with best machinery from Durkopp Adler, Germany,Juki, Japan, Brother, Japan, Union Special, and U.S.A amongst others.Turnover of last four years: Rs. Cr 12212 9787 7669 5841 2008 2009 2010 2011Space evolution: Operational store space increased to 13.25 million square feet, which includesaround 2 million square feet added after merger of home business. Others, Other, 5.07 Big Big 5.9 Bazaar, Bazaar, 6.2 6.88 Food Food Bazaar, Bazaar, 0.26 0.47 2008-2009 2009-2010 18
  20. 20. Sources: ANNUAL REPORT 2008-09 ANNUAL REPORT 2009-10 Others, ANNUAL REPORT 2010-11 Big- 7.04 Bazaar, 7.64 Note - Retail space in million square feet Food Bazaar, 0.55 2010-2011Footfalls: x-axis- Footfall in million Y-axis- Years 2008 163 2009 185 Footfall in million 2010 220 2011 297 0 50 100 150 200 250 300 350 19
  21. 21. DIFFERENT PRODUCT PROFILES OF THE FOOD-BAZAAR: Chocolates Dry Fruits Fruits and vegetables Beverages Ready to cook Ready to eat Staples Personal care Home care Crockery Utensils Refrigerated productsFUTURE PLANS OF THE ORGANIZATION: Much like in other categories, in food too, it is witnessing a rapid transformationof customer preferences. Modern trade brought in more choice and convenience toshopping for food products and staples and in home and personal care products forcustomers. Now in most cities, customers who had entered modern retail eight to tenyears back, with growing income and more acquaintance with global and local trends areready to taste more diverse cuisines at their dining table and demands more value addedproducts. And these customers are willing to pay more for it. In the large cities customersare experimenting with international cuisine and with different regional Indian cuisinewith equal gusto. Customers are also demanding more healthy food choices and fresherproducts, and are willing to pay a premium for it. This provides a unique opportunity formodern retail. 20
  22. 22. During the year, the company opened 26 Food Bazaar outlets. A large number ofexisting Food Bazaar outlets were also upgraded in order to offer more products andservices to the customer. These include, larger sections for fresh fruits and vegetables andfood services. In order to provide better quality and fresher produce, the company is tyingup with producers across the country for key fruits and vegetables and investing insourcing, sorting, packaging centers and as well as an efficient logistics networkincluding cold chains across the country for both domestic as well as imported produce.The company is also set to open a state-of-the-art integrated food distribution centeroutside Mumbai equipped with „on-conveyor sorting,‟ „put-to-light‟ supply chainprocess, „roll-caged‟ based store delivery and similar technologies. Similar integrateddistribution centers will be rolled out in the key eight cities across the country during thefirst half of the forthcoming financial year. The company‟s specialized sourcing subsidiaries, Future Fresh foods Limited forfruits and vegetables and Future Agrovet Limited, for staples, commodities, spices anddry fruits too have acquired significant traction in sourcing directly from producers,thereby yielding more control over product pricing and efficiencies for the company. A key development during the financial year was also the growth of KB‟sFairprice format that crossed the 200th store mark. Present only in Delhi, Mumbai andBangalore, the format opened its 100th store in Delhi. The format has now matured andcome of age and the company is now confident of rolling out around fifteen stores everymonth as it forms a key part of the company‟s growth strategy in this category. A crucial roll out for the forthcoming year will be the launch of Food Hall – anupgraded food store that will cater to a more evolved set of customers willing to pay ahigher price for more value added food products as well as international food ingredients.The company has drawn up an extensive roll out strategy focusing both on merchandiseas well food services. While the first Food Hall has come up in the up market PalladiumMall in Mumbai, the company has mapped more than 16 catchments in the country thatare ideal for opening this upper-end food retail format. In the year of 2010-11, futurevalue retail have opened 26 new Food-Bazaar outlets, 214 KB‟S Fairprice stores acrossIndia in which 115 stores belongs to Delhi alone. 21
  23. 23. MILESTONE:2012CISO Award 2012: Future Group was felicitated for using Information security technology in the most effective and innovative manner.Golden Spoon Awards 2012: Most Admired Food and Grocery Retailer of the Year for its Private Labels in Big Bazaar – Future Group.Images Fashion Awards (IFA) 2012: Most Admired Private Label Retailer - Pantaloons.ET Retail Awards 2012: FedEx Most Trusted Retailer of the Year Award – Big Bazaar.Recognition by CMO Council, USA & Asia: Master Brand Award-Future Supply Chains.Bloomberg UTV B-School Excellence Award - Best educational institute in Retail - Future University2011Designomics Awards: Recognising Businesses that build value through Design.CNBC AWAAZ Consumer Awards: Most Recommended Modern Retail Brand of the year in the Popular Choice category- Big BazaarBrand Equity‟s Most Trusted Brands awards: Most Trusted Retailer - Big BazaarImages Retail Awards: Most Admired Retailer of the year in the Home Products Category.Excellence Awards -for Finance & Accounting Transformation through Shared Services.Golden Spoon Awards - Most Admired Food Retailer of the Year: Private Labels – Food BazaarMarketing Excellence Awards held by Indira Group Of Institutes -Best Employer Of The YearACE (Awards for Customer Excellence) 2011Franchise India Expo 2011 - Best Food And Grocery Chain Of 2011-Food Bazaar Best Value Retailer of 2011 - Big BazaarFood Retail & SCM and Agro Logistics: Food Supply Chain Company Of The Year In Retail Category – Food Bazaar 22
  25. 25. INTRODUCTION Research can be defined as a scientific and systematic search for pertinentinformation on specific topic. It is careful investigation or inquiry, especially throughsearch for new facts in any branch of knowledge. Marketing research is the systematic & objective identification, collection,analysis, dissemination & use of information for the purpose of improving decisionmaking related to the identification & solution of problems & opportunities in marketing.1. Research Design: A research design is the overall program of research. It is the general blueprint forthe collection, measurement & analysis of data. It is the overall operational pattern orframework of the project that stipulates what information is to be collected, from whichsources & by which procedure. Research design used during project is “Descriptive Research”. In thistype of research, researcher has to portray accurately the characteristics of particularindividual, group or situation.2. Data Collection Method: Data can be collected directly through interaction or through existing records. Thedata which is fresh and collected by interaction is known as primary source of datacollection while, data collected through existing records is known as secondary source. 1. Primary Source: For this research the data is collected through survey method with structured questionnaire as a research instrument, from the customers of Food Bazaar in the premises of Big Bazaar, to gain insight about the consumer buying behavior and also about various aspects related to shrinkage. The collected data has been analyzed to provide findings and suggestions. The structured questionnaire includes use of dichotomous question, multiple choice questions, questions with rank order scaling and open ended questions. Also in-depth interviews have been conducted with store manager and department managers. Similarly some observations are drawn to find suggestive measures. Thus the primary data collection methods used for the project includes: 24
  26. 26. 1. Survey method by administering structured questionnaire 2. In-depth interviews 3. Observations 2. Secondary Sources: The data is collected through books, company manual, company website & annual report. It is to gain insight and information about the various issues relevant to the project. Secondary data gives direction to the project and hence it plays a vital role in any project, for this project the secondary data sources are 1. Company Publications 2. Books 3. Websites 4. Newspapers For study of shrinkage, latest store shrinkage report and books are referred.3. Sampling Procedure: Sampling is the process of learning about the population on the basis of a sampledrawn from it. Thus, in the sampling technique instead of every unit of the universe onlya part of the universe is studied & the conclusions are drawn on that basis for the entireuniverse. A sample is subset of population unit. The process of sampling involves threeelements: 1. Selecting the sample 2. Collecting the information 3. Making an inference about the populationThe method of sampling used during project is “Convenience Sampling”.4. Population: It is the target group, which the researcher wants to know about by studying oneor more of its samples. The population for the study includes the customers of FoodBazaar in Big Bazaar, Sinhgad Road, Pune. 25
  27. 27. 5. Sampling Unit: The sampling unit is the basic unit containing the elements of the population to besampled. It may be the element itself, i.e., the object on which measurements are taken ora unit in which the element is contained. Sampling unit chosen for the project is an“Individual customer of Food Bazaar”.6. Sample Size: Sample Size is 80 customers of Food Bazaar in Big Bazaar, Sinhgad Road, Pune. 26
  29. 29. INDIAN RETAIL MARKET Retailing in India is evolving rapidly, with consumer spending growing byunprecedented rates and with increasing no of global players investing in this sector.Organized retail in India is undergoing a metamorphosis and is expected to scale up tomeet global standards over the next five years. India‟s retail market has experiencedenormous growth over the past decade. The most significant period of growth for thesector was between year 2000 & 2006, when the sector revenues increased by about93.5% translating to an average annual growth of 13.3%. The sectors growth was partly areflection of the impressive Indian economic growth and overall rise in income level ofconsumers. Retail sector is the largest contributing sector to country‟s GDP. Comparativepicture of GDP contribution by retail sector of year 2010 is shown below: Sr. No. Country Contribution of retail sector to GDP 1 12% USA 2 12% India 3 8%-10% China 4 6% Brazil With all these features and advantages, the opportunity for structural changesfrom unorganized retail industry format to organized format has made the Indian marketsas a “Permissible ground” for global and domestic private players to fetch their goods andfuel the economy to grow.MEANING OF RETAIL: The word retail is derived from the French word retailer, meaning to cut a pieceoff or to break bulk. In simple terms, it implies a first-hand transaction with the customer.Retailing can be defined as the buying and selling of goods and services. It can also bedefined as the timely delivery of goods and services demanded by consumers at pricesthat are competitive and affordable. Retailing involves a direct interface with the customer and the coordination ofbusiness activities from end to end- right from the concept or design stage of a product or 28
  30. 30. offering, to its delivery and post-delivery service to the customer. The industry isundoubtedly one of the fastest changing and dynamic industries in the world today.CURRENT SCENARIO OF INDIAN RETAIL MARKET: The size of Indian retail industry is more than US $350 billion but it is highlyunorganized. The organized sector has started developing in the past few years. ManyInternational brands have entered the market. With the growth in organized retailing,unorganized retailers are fast changing their business models. According to studyconducted by ICRIER, total retail business in India will grow at 13% annually, from US$322 billion in 2006-07 to US $590 billion in 2011-12 and further US $1 trillion by 2016-17. Size of Indian Retail US$ bn 1011 600 322 2006-07 2011-12 2016-17 Source: Technopak Analysis, CSO and other sources.FDI NORMS: Regulatory controls on FDI have been relaxed considerably in recent years.Currently the government allows 51% FDI in multi brand retailing and 100% in singlebrand retailing & cash-n-carry business. Also government allowed FDI in aviation andplanning to allow for pharmaceuticals.FACTORS DRIVING THE GROWTH OF RETAIL SECTOR: The consistent economic growth resulted in a decent rise in income level of themiddle class. The thickening of the pocket of the consumer resulted in a revolution of the 29
  31. 31. retail industry. Many International brands have entered the market. With the growth inorganized retailing, unorganized retailers have brought drastic changes in their businessmodels; many factors are responsible for the growth of retail sector. These are: 1) Increasing disposable income 2) Increasing number of dual income nuclear families 3) Changing lifestyle and consumer behavior 4) Experimentation with formats 5) Store designISSUES BEFORE RETAIL SECTOR IN INDIA: Entry of OrganizedRetail Players In Indian retail sector organized retail is a recent phenomenon. It is a zero-sumgame between two players:- a) Organized sector & b) unorganized sector India‟s retail is dominated by a large number of small retailers consisting of thelocal kirana shops, owner manned general stores, chemists, footwear shops, apparelshops, paan & beedi shops, hand-cart hawkers, pavement vendors etc. which togethermake up the so-called Unorganized retail. Organized retail is reflected in sprawling shopping centers, multiplex-malls &huge complexes which offer shopping, entertainment and food all under one roof. Thelast 3-4 years have witnessed the entry of a number of organized retailers Opening storesin various modern formats in metros and other important cities. Organized retailing hasbegun to tap the enormous market but its share is small. However, opinions are dividedon the impact of growth of organized retail in the country. Concerns have been raised thatgrowth of organized retail may have an adverse impact on retailers in the unorganizedsector. It has also been that growth of organized retailing will yield efficiencies in supplychain, enabling better success to markets to producers (including farmers and smallproducers) and enabling higher prices, on the one hand and, lower prices to consumers,on the other. In India, organized retail contributed roughly 5-8% of the total Indian retail2011-12, which is very small even compared with most of the emerging marketeconomics. 30
  32. 32. 2006-2007 2011-12 Organised Unorganised Unorganised Organised 8% 4% 92% 96% Total Retail: US $322 billion Total Retail: US $421 billion Interestingly, this huge growth in organized retail does not involve a decline in thebusiness of unorganized retail, the sales of the unorganized retail, the sales of theunorganized sector is expected to grow by 10% p.a., from US$ 322 billion 2006-07 to US$ 495.6 billion in 2011-12.MODERN RETAIL FORMATS IN INDIA: The face of India retail sector is changing; new & innovative business models arebeing adopted. The formats prevalent in retail sector are:1. HYPER MARKET – Hypermarket offer a large basket of products, ranging fromgrocery, fries & processed food, beauty & healthcare products etc. Ex.- Spencer‟s, Big Bazaar2. CASH & CARRY – These are large B2B focused retail formats, buying & selling inbulk for various commodities and carry several thousand stock-keeping. Ex.-Mito, a Germany based C&G.3. DEPARTMENT STORES - Department stores have a large layout with a wide rangeof merchandise mix, usually in cohesive categories, such as showed towards garments. Ex.:- Shopper‟s stop, Westside4. SPECIALITY STORES – Specialty stores are single category, focusing on individualsand group clusters of the same class with high product loyalty. Ex.-Archies, Woodland5. DISCOUNT STORE – A discount store is a retail store offering a wide range ofproducts, mostly branded, at discounted prices or apparel or footwear brands. Ex.-Koutons, Levis. 31
  33. 33. 6. CONVENIENT STORE – A convenience store is a relatively small retail store locatednear a residential area (closer to consumer), open long hours, 7 days a week and carryinga limited range of staples and groceries. Ex. – In & Out.FUTURE ROADMAP: Indian Government seems determined to go ahead and gradually liberalize theretail sector despite continuing opposition from the Left parties. The amazing fact is thatsome movement is taking place. This seems to be due to Prime Minister ManmohanSinghs conviction that bringing in the big retail chains will unleash a wave ofemployment in rural and urban areas. The fears of the Left, on the other hand, are that theentry of retail giants will mean job losses as small mom-and-pop retailers get pushed outof existence. The fact is there is merit in both arguments. On the plus side, it is clear thatagriculture is not providing enough jobs for the economy and there is an unprecedentedwave of migration to urban areas. The entry of retail chains, which buy straight from thefarmer, is bound to bring about greater purchasing power as the producer will get muchbetter prices. Similarly, this gives a bonanza to the consumer who gets food productssourced directly from the farmer without having to pay the middlemans commission. Butthe Agitators have a point too. They are worried that the 15 million small retailers in thecountry may be forced out of existence. India has the largest retail economy in the world,according to a study by the CII (Confederation of Indian Industry). And the time hascertainly come for retail chains to enter this country. The process has been gradual, asmentioned earlier, but even so large retail has made a dramatic impact in the areas whereit has been allowed to make an entry. In the long run, it is clear that the entry of largeretail chains will benefit the agricultural sector. They will also have a long-term effect onagricultural unemployment, which is the big worry for policymakers right now. Domesticretail chains have already been allowed to set up business and it is now merely a matterof allowing bigger foreign players into the country Multinational giants like Wal-Martand Carrefour also have deep pockets and their huge investible funds are meant forsourcing products from rural areas, which in turn will provide more jobs. The thinking inthe commerce ministry right now seems to be that the existing policy of allowing onlysingle brand retailing can be extended in a phased manner to multi-brand retailers. 32
  34. 34. SWOT Analysis of Indian Retail Sector-Strengths  Increasing demand driven by the country‟s young working population  Increase in per capita income which in turn increases the household consumption  Create win-win situation for all links in value chain (suppliers, producers, retailers and customers).  Improvement in the standard of living.  Technology intensive industryWeaknesses  Lack of expertise in Supply Chain Management  Inadequate Infrastructure  Stringent Labor Laws  Lack of specialized professionals in Industry  Lack of industry status.  Government Restrictions on FDI  Non-Availability of Government Land.Opportunities  Change in consumer behavior pattern and increase in disposable income.  It was estimated that millions of people would be engaged in Retail and Retail support activities by 2012  Indian rural markets offer a sea of an opportunity for the retail sector.  Upcoming international Players  Healthy prospect for the fashion industry.  Approximately only 5% to 8% of retail sector is organized, so there is large scope for organized retail.Threats  Indian taxation system favors small retail business.  Competition from unorganized Sector to the organized Sector.  Middle class Psychology.  Increasing Real Estate prices  Govt.‟s decision on FDI in India. 33
  35. 35. Customer feedback in a retail setting is important to the growth and success oforganization. Customers can tell how to improve product line, increase sales throughmore effective marketing, enhance customer service, improve your stores layout to makeshopping easier and any other changes you should consider to increase revenue.What is customer Feedback? Customer feedback is the process or specific instance of providing information tobusinesses about products, services and customer service. Management, marketing andsales departments can all use customer feedback to streamline processes and improveprofitability. Information coming directly from customers about the satisfaction ordissatisfaction they feel with a product or a service. Customer comments and complaintsgiven to a company are an important resource for improving and addressing the needsand wants of the customer. The information is procured through written or oral surveys,online forms, emails, letters, or phone calls from the customer to the company.Importance of customer feedback – A happy customer leads to a successful business. Taking customers‟ thoughts,comments and feedback seriously can lead to increased sales and opportunities forimprovement. Understanding what customers think of you can only improve servicedelivery and quality of products leading to business sustainability. Monitoring customerfeedback can be done through several mechanisms including written and oral satisfactionsurveys and online comments. Customer feedback is vital to making a business work.Your customers are the heart of your operation; without them, it would be impossible tohave any of the success that you do. Customer feedback can be an excellent way to keepyour business going in a positive direction. 1. Get Honest Opinions -Customer feedback is a vital way to get honest opinions on your services or products from people who are familiar with them. These opinions can make it easier to get into the minds of the most important critics. 2. Improve Relations -When customers feel that a business truly cares about them and what they think, they may be more likely to be loyal customers. When a business makes changes according to feedback, it shows that they truly listen and respect those opinions. 34
  36. 36. 3. Inexpensive Business Advice -Some businesses pay thousands of dollars for someone to come in and tell them what improvements need to be made to the business to get more customers. Customer feedback is essentially inexpensive business advice directly from the source.What is shrinkage & causes of shrinkage? Inventory shrinkage is the loss of products between point of manufacture orpurchase from supplier and point of sale. The term shrink relates to the difference in theamount of margin or profit a retailer can obtain. If the amount of shrink is large, thenprofits go down which results in increased costs to the consumer to meet the needs of theretailer. Retail shrinkage is the difference in the value of stock as per the books or systemand the actual stock available in the shop or Shrinkage is the reduction in physicalinventory caused mainly by process failure, errors, shoplifting and employee theft. Thecauses of retail shrinkage are mainly employee theft, shoplifting, administrative errorsand vendor fraud.Example – If Theoretical inventory = 5, Physical Inventory = 4, sales= 20 then Shrinkage(5-4)/20=5% 35
  37. 37. 1. Employee Theft: Also known as “internal shrinkage”, this is caused by the employees of the store such as pilfering merchandise, cash, provisions etc. Employee theft and embezzlement of accounts cause almost half of the total retail shrinkage. Cashier caused shrinkage occurs in ways of wrong recording of transactions, forging receipts, misuse of the register or computer etc.2. Shoplifting: Otherwise called “commercial burglary”, this is one of the most common crimes. In slang language it is expressed as “five-finger discount”. Studies show that one out of twelve customers might be a shoplifter. Professional shoplifters are called “boosters”. Shoplifters require privacy. Things should be arranged in such a way so as to avoid “blind spots” in the store and thus avoid internal loss. Small and expensive items should be kept behind the counter or locked in a display case. CCTV filming all areas of the store is the most successful way to prevent shoplifting. Installation of physical obstacles such as alarm at the store exits, and closing the back exit of the shop would also prove beneficial.3. Administrative Errors: Administrative and paperwork errors such as mark up and mark down of the prices cause around 15 percent of the retail shrinkage.4. Vendor Fraud: Vendor Fraud is intentional theft or inventory loss associated with vendors, often involving the accurate delivery and return of merchandise. Typical vendor fraud prevention methods are vendor truck and delivery audits and detailed receiving.5. Other Causes:  Unrecorded price changes  Internal cost fluctuations  Spoilage/Perishables/Salvage  Inaccurate physical counts 36
  38. 38. Benefits of reducing shrinkage: Benefits Positive Impact Lower out of stock & less Higher Consumer To frustration Satisfaction Consumer More open merchandising More convenience Greater choice Maintain loyalty Lower cost Increased sales To Higher store loyalty Customer Retention Retailer More efficient replenishment Increase profit Improved market share On this background of the importance of customer feedback and shrinkagereduction; the project has been conceptualize to understand various aspects about FoodBazaar through study of customer feedback and also the reasons to identify shrinkage andsuggest measures for shrinkage reduction and enhancing customer satisfaction. 37
  40. 40. Table No. 5. 1: The different sources from where the respondents came to know aboutBig Bazaar & its various offers. Response Newspapers TV Internet Hoardings Friends No. of 34 26 13 21 14 customers Percentage 32% 24% 12% 19% 13% Response From different sources 13% 32% 19% Newspapers TV Internet 12% Hoardings 24% FriendsInference: From the above table we can ascertain that majority of customers i.e.- 32% &24% came to know about big bazaar & it‟s offers from local newspapers & TVrespectively.Table No. 5. 2: Frequency of purchasing of customers in Food Bazaar. 39
  41. 41. More than Once in a Once in Response once in a Fortnightly Rarely week Month week No. of 6 21 8 30 15 Customers Percentage 7% 26% 10% 38% 19% Purchasing Percentage of Customers 19% 7% 26% More than once in week Once in a week Fortnightly 38% 10% Once in a month RarelyInference: Majority of the customer i.e.- 38% visits store once in month, followed by 26%customer once in a week. Thus we can say that majority of customer visit Food Bazaaronce in month, may be during weekends. We can conclude that the customer do not visitFood Bazaar for their petty daily purchase, they are visit to other stores. 40
  42. 42. Table No. 5. 3: The factors which attract customers to Food Bazaar. Quality of Offers at Price of Availability Any Response products Food Bazaar Products of Product Other No. of 21 28 15 14 2 customers Percentage 26% 35% 19% 17% 3% Factors which attract customers 3% 17% 26% Quality 19% Offers Price Availability 35% Any OtherInference: From the data collected we can determine that most of the customer i.e.- 35%,visit the store by perception that offers are good at Food Bazaar, 26% for the quality ofproduct, 19% for price of product & 17% for easy availability of product. From this wecan say that Food Bazaar have to increase their offers & other 3% customers are visitseeking convenience. 41
  43. 43. Table No. 5.4: Most frequently visited sections in Food Bazaar. Section Food Non-Food General Merchandise No. of 45 25 10 customers Percentage 56% 31% 13% Customers favourate section 13% 31% 56% Food Non-Food General MerchandiseInference: Most of the customers i.e.- 56% visit food section when they enter Food Bazaar &31% visits non-food section. So we conclude that non-food & GM section have tocombinely take efforts to attract customers. 42
  44. 44. Table No. 5.5: Ranking of sections as per the amount of time spent by customers in FoodBazaar. Section Food Non-Food General Merchandise No. of 41 28 11 customers Percentage 51% 35% 14% Ranking of sections 14% 51% Food 35% Non-Food General MerchandiseInference: Most of the customers who visits to the Food Bazaar, would like to spend moretime in food section which means it shows customer preference towards food sectionfollowed by non-food & GM section respectively. 43
  45. 45. Table No. 5.6: Ranking of sections as per the amount spent by customers in FoodBazaar. Section Food Non-Food General Merchandise No. of 43 25 12 customers Percentage 54% 31% 15% Ranking of sections 15% 54% 31% Food Non-Food General MerchandiseInference: From the above table, we can analyze that the customer of Food Bazaar spendmore amount in food section, which shows that food section has different variety ofproducts that can customer buy. Next customer prefers non-food & then GM. 44
  46. 46. Table No. 5.7: Awareness of private labels. Response Yes No No. of 55 25 customers Percentage 69% 31% Awareness of private labels 31% Yes 69% NoInference: From the above table, it is clear that awareness of private labels is good which isnear about 70%. So instead of creating awareness they should try to increase the sale ofprivate labels. 45
  47. 47. Table No. 5. 8: Awareness about private brands of Food Bazaar. Tasty Fresh & Clean Product Name Dreamline Sach Treat Pure Mate No. of 34 35 25 31 22 Customers Percentage 23% 24% 17% 21% 15% Awareness about private brands 15% 23% 21% Tasty Treat Fresh & Pure 24% Clean Mate Dreamline 17% SachInference: From the above table it is observed that private labels of food section are wellknown to customers which is in average 47%, private labels of non-food section arequietly known to customers which is 32% & remaining 21% belongs to Gm section. Most preferred brands are Fresh & Pure, Tasty Treat & Dreamline respectivelywhile least preferred brands are Clean Mate & Sach. 46
  48. 48. Table No. 5.9: Effect of various sales promotional offers of Big Bazaar, on the buying ofconsumers. Sabse Offer Wednesday Weekend Exchange MBB Saste 5 Other Names Bazaar Offers Mela Din No. of 22 30 23 24 18 4 Customers Percentage 18% 25% 19% 20% 15% 3% sales promotional offers 3% 15% 18% Wednesday Bazaar MBB 20% 25% Weekend Offers Sabse Saste 5 Din Exchange Mela 19% OtherInference: From the above table, we can analyzed that from regular offers most of thecustomers shops once a month in MBB & weekend offers which is 25% & 19%respectively so offers should be maximize in MBB instead of Wednesday bazaar. 47
  49. 49. Table No. 5.10: Effects of discounts/schemes on buying behavior of the customers inFood Bazaar. Response Always Mostly Sometimes Rarely Never No. of 19 22 18 18 3 Customers Percentage 24% 27% 22% 23% 4% Effects of discounts/schemes 4% 24% 23% Always Mostly 22% 27% Sometimes Rerely NeverInference: From the above table it is observed that discounts or schemes strongly affect thebuying behavior of customers so various offers should be increased to increase thefootfall. 48
  50. 50. Table No. 5.11: Perception of consumers about prices of products in Food Bazaar. Moderately Moderately Very Price Very Less Same Less High High No. of 9 32 20 11 8 Customers Percentage 11% 40% 25% 14% 10% Perception about prices 10% 11% 14% Very Less Moderately Less 40% 25% Same Moderately High Very HighInference: From the above table it is observed that most of the people perceptions aboutproducts available in Food Bazaar are comparatively less than market price. 49
  51. 51. Table No. 5.12 .1: Level of satisfaction about Quality of products in Food Bazaar. Neither Satisfaction Highly Somewhat Somewhat Highly Satisfied Nor level satisfied Satisfied Dissatisfied Dissatisfied Dissatisfied No. of 15 47 14 4 0 Customers Percentage 19% 59% 17% 5% 0% level of satisfaction about Quality 0% 5% 19% 17% Highly Satisfied Somewhat Satisfied Neither Satisfied Nor Dissatified 59% Somewhat Dissatisfied Highly DissatisfiedInference: From above table it is observed that highly satisfied customers are 19%,somewhat satisfied are 59% which is very good figure, neither satisfied nor dissatisfiedare 17%, somewhat dissatisfied are only 5% & there are no highly dissatisfied customers. 50
  52. 52. Table No. 5.12.2: Level of satisfaction about Price of products in Food Bazaar. Satisfaction Neither level Highly Somewhat Somewhat Highly Satisfied Nor regarding satisfied Satisfied Dissatisfied Dissatisfied Dissatisfied Price No. of 19 31 26 4 0 Customers Percentage 24% 39% 32% 5% 0% level of satisfaction about Price 0% 5% 24% Highly satisfied 32% Somewhat Satisfied Neither Satisfied Nor Dissatisfied 39% Somewhat Dissatisfied HighlyDissatisfiedInference: From above table it is observed that highly satisfied customers are 24%,somewhat satisfied are 39%, neither satisfied nor dissatisfied are 32%, somewhatdissatisfied are only 5% & there are no highly dissatisfied customers. 51
  53. 53. Table No. 5.12.3: Level of satisfaction about Availability of products in Food Bazaar. Neither Product Highly Somewhat Somewhat Highly Satisfied Nor Availability satisfied Satisfied Dissatisfied Dissatisfied Dissatisfied No. of 21 34 17 7 1 customers Percentage 26% 43% 21% 9% 1% level of satisfaction about Availability 9% 1% 26% Highly satisfied 21% Somewhat Satisfied Neither Satisfied Nor Dissatisfied 43% Somewhat Dissatisfied HighlyDissatisfiedInference: From above table it is observed that highly satisfied customers are 26%,somewhat satisfied are 43% , neither satisfied nor dissatisfied are 21%, somewhatdissatisfied are only 9% & there are only 1% highly dissatisfied customers. 52
  54. 54. Table No. 5.12.4: Level of satisfaction about Accessibility of products in Food Bazaar. Neither Product Highly Somewhat Somewhat Highly Satisfied Nor Accessibility satisfied Satisfied Dissatisfied Dissatisfied Dissatisfied No. of 14 38 14 11 3 customers Percentage 17% 47% 18% 14% 4% level of satisfaction about Accessibility 4% 17% 14% Highly satisfied 18% Somewhat Satisfied Neither Satisfied Nor 47% Dissatisfied Somewhat Dissatisfied HighlyDissatisfiedInference: From above table it is observed that highly satisfied customers are 17%,somewhat satisfied are 47%, neither satisfied nor dissatisfied are 18%, somewhatdissatisfied are only 14% & there are 4% of highly dissatisfied customers. 53
  55. 55. Table No. 5.12.5: Level of satisfaction about offers in Food Bazaar. Satisfaction Neither level Highly Somewhat Somewhat Highly Satisfied Nor related to satisfied Satisfied Dissatisfied Dissatisfied Dissatisfied offers No. of 19 38 18 4 1 Customers Percentage 24% 47% 23% 5% 1% level of satisfaction about offers 1% 5% 24% Highly satisfied 23% Somewhat Satisfied Neither Satisfied Nor Dissatisfied 47% Somewhat Dissatisfied HighlyDissatisfiedInference: From above table it is observed that highly satisfied customers are 24%,somewhat satisfied are 47% , neither satisfied nor dissatisfied are 23%, somewhatdissatisfied are only 5% & there are only 1% highly dissatisfied customers. 54
  56. 56. Table No. 5.12.6: Overall satisfaction level of customers about Food Bazaar. Neither Overall Highly Somewhat Somewhat Highly Satisfied Nor Satisfaction satisfied Satisfied Dissatisfied Dissatisfied Dissatisfied No. of 6 64 6 4 0 Customers Percentage 7% 80% 8% 5% 0% Overall satisfaction level 0% 8% 5% 7% Highly Satisfied Somewhat Satisfied Neither Satisfied Nor Dissatisfied 80% Somewhat Dissatisfied Highly DissatisfiedInference: From above table it is observed that highly satisfied customers are 7%, somewhatsatisfied are 80% which is very good figure, neither satisfied nor dissatisfied are 8%,somewhat dissatisfied are only 5% & there are no highly dissatisfied customers shows theFood Bazaar is aggressive in overall satisfaction. 55
  57. 57. Table No. 5.13: Likelihood of customers to recommend Food Bazaar to others. Definitely Definitely Probably Probably Not will not Recommendations will will will not Sure recommen recommend recommend recommend d No. of 22 24 24 6 4 customers Percentage 27% 30% 30% 8% 5% Recommendation for Food Bazaar Definitely will 5% recommend 8% 27% Probably will recommend 30% Not Sure 30% Probably will not recommend Definitely will not recommendInference: From the above table we can analyze that percentage of definitely & probablyrecommendation is quite good which shows the customer loyalty. As well as not sure is30%, gives the opportunity to make them loyal by giving little push or efforts. 56
  59. 59. FINDINGS: 1. It can be said that there is a good impact of newspaper & TV media for the promotion of Big Bazaar as more than 50% awareness is spread through it. 2. Promotional strategies like Monthly Bachat Bazaar & Wednesday Bazaar have good response as 38% & 26% respectively, which means these promotional strategies are resulting into increased number of customers and thereby increased sales. 3. Significant numbers of Customers are attracted at Food Bazaar because of sales promotion offers as 35% of respondents came for shopping assuming the great offers provided by Food-Bazaar. 4. Customers spend more money on food section compared to general merchandise section as food section caters to basic or daily needs while GM section provides the products which are required on less frequent basis. 5. There is considerable products awareness of private labels as Tasty Treat has 23% awareness, Fresh & Pure has 24% awareness, Dreamline has 21% awareness, Clean Mate has17% awareness &Sach has 15% awareness of total awareness of private labels. The reasons for purchase of private labels include, less prices of private labels compared to national products and variety of offers & discounts. 6. It is observed that discounts or schemes strongly affect the buying behaviour of customers. So the variety and frequency of offers should be increased to increase the footfall. 7. It is observed that most of the customers‟ perception about prices of products in Food Bazaar is moderately less than market price. 8. Food Bazaar is successful in satisfying almost 80% of its customers. Thus the overall satisfaction of Food Bazaar is very good. 9. A significant proportion of customers are likely to recommend Food Bazaar to others, which is an indication of their satisfaction and their loyalty for Food Bazaar. 10. Major shrinkage occurred in chocolate section of food department due to employee theft & shoplifting. 58
  60. 60. 11. Improper storage of the biscuits, wherein heavily boxes kept on one another, which resulting into the damage with biscuits, thereby increase in the shrinkage.12. In Farm fresh section instead of using FIFO method for fruits & vegetables, it was observed that the new arrival of fruits & vegetables have been kept on top of old stock, resulting into generation of waste products and thus increased in shrinkage. 59
  61. 61. SUGGESTIONS: 1. As there is good impact of Newspaper & TV Media, Company should continue promotion with Newspaper & TV Media. Along with that as internet is found to be one of most frequently used media in urban areas, Big Bazaar should focus on internet promotion. 2. As customers spend more time & money in food section, other section can be benefited through this by giving combined offers which results in increase in sale of other sections too. 3. Awareness of Sach & Clean Mate private labels has to increase by keeping them at the starting of respective section. Also it is necessary to give product sampling or free samples with some other private labels which can generate greater sale. 4. As significant numbers of customers are satisfied, now Food Bazaar should focus on customer delightment. For this some innovative ideas like putting health tips in food section in front of every food, keeping the boards of recipies can be implemented. 5. It is necessary to do benchmarking on weekly basis to know facilities & services provided by competitors. By implementing this Food Bazaar can improve in the areas in which it is lagging behind the competition. 6. It is necessary to tap the nearer customers for petty daily purchase by providing home delivery service. In this home delivery service Food Bazaar can supply daily needs like Fruits & vegetables, milk, bread & toasts etc. 7. Chocolate section should be kept under the CCTV surveillance to avoid the instances of employee theft & shoplifting. Also an arrangement of bins has to be done for biscuits to reduce damage of biscuits resulting in reducing shrinkage. 8. As the landing price of Food-Bazaar is very low, company should keep the price of products bit low by providing offers & discounts; than other competitors to increase footfall. 9. There is a need of keeping the new arrival of Fruits & vegetables under the old Fruits & vegetables. Hence the FIFO system is to be maintained in order to reduce the shrinkage. 60
  62. 62. CONCLUSION: Food Bazaar is a retail giant providing all goods under one roof. It is a storewhich is for price conscious people, it provides them variety or options for purchasing.As the slogan of Big Bazaar “Naye India Ka Bazaar ” & Food Bazaar‟s Slogan “Ab GharChalana Kitna Aasan”, has been attracted most of the customers. This slogan attractsmany customers & ultimately increases in number of footfalls in Food Bazaar. According to this study, most of customers are very much satisfied with thequality of products in Food Bazaar. Also overall satisfaction of customers is very good.The offers & discounts also attract lot of customers to purchase items from Food Bazaarrather than outside. Also convenient shopping & self-service attracts the customers. Butin today‟s scenario just providing products at cheaper prices is not sufficient for survivingin the market; people require more than just products, they want the products withmaximum service. Providing quality goods at cheaper prices can be done by any retailoutlets but what can make difference is the services provided by the retail outlets. Food Bazaar management should now focus on the service part, they should try toattract new customers and sustain their old customers by providing them high qualityservice which will drive them to the store and will not let them move in to any otherstore. This service may include providing of instant home delivery services, providingproper cooling inside the store, billing time reduction, enhancing the ambience of thestore and reducing the chances of customers getting irritated. In the general merchandise section, the purchasing percentage of customer wasless than other section, while purchasing percentage of food section is very high. Hencesome of combined offers can be developed for both GM and Food section, which willhelp to increase sales of GM section also. There were a large percentage of customerswho are somewhat satisfied with the price level. They feel that prices in Food Bazaar aremoderately less than others. They should now even try to target the affluent class people to purchase fromthem by providing high end products. Food Bazaar has already established itself as abrand; with more customer centric initiatives it can strengthen its brand further in themarket. 61
  63. 63. BILIOGRAPHYBooks:1. Kotler & Keller, Marketing Management, 14e Edition, Pearson Education, Pg.120, 206 to 2082. Dash & Malhotra, Marketing Research: An Applied Orientation, Sixth Edition, Pearson Education, Pg. 6, 68 to70, 98, 149, 170, 176, 192, 292 to 308, 326, 386, 434, 726 to 7343. C.R.Kothari, Research Methodology, Second Edition, New age international publisher, Pg. 1,7,84. Paul Freathy, The retailing book: Principles & Applications, Pearson Education, Pg. 125 to 134, 240 to 242Company Publications:1. Annual Report 2009-102. Annual Report 2010-113. Stock-take Report July 2012Websites:1. www.pantaloon.com2. www.fvrl.com3. 62